[Federal Register Volume 81, Number 225 (Tuesday, November 22, 2016)]
[Notices]
[Pages 83892-83896]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-28037]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-79330; File No. SR-NASDAQ-2016-155]


Self-Regulatory Organizations; The NASDAQ Stock Market LLC; 
Notice of Filing and Immediate Effectiveness of Proposed Rule Change To 
Amend the Limit Order Protection for Members Accessing the Nasdaq 
Market Center

November 16, 2016.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
(``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given that 
on November 4, 2016, The NASDAQ Stock Market LLC (``Nasdaq'' or 
``Exchange'') filed with the Securities and Exchange Commission 
(``SEC'' or ``Commission'') the proposed rule change as described in 
Items I and II below, which Items have been prepared by the Exchange. 
The Commission is publishing this notice to solicit comments on the 
proposed rule change from interested persons.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The Exchange proposes to amend the Limit Order Protection or 
``LOP'' for members accessing the Nasdaq Market Center and adding rule 
text related to a collar applicable to Primary Pegging and Market 
Pegging Orders.
    The text of the proposed rule change is available on the Exchange's 
Web site at http://nasdaq.cchwallstreet.com, at the principal office of 
the Exchange, and at the Commission's Public Reference Room.

II. Self-Regulatory Organization's Statement of the Purpose of, and 
Statutory Basis for, the Proposed Rule Change

    In its filing with the Commission, the Exchange included statements 
concerning the purpose of and basis for the proposed rule change and 
discussed any comments it received on the proposed rule change. The 
text of these statements may be examined at the places specified in 
Item IV below. The Exchange has prepared summaries, set forth in 
sections A, B, and C below, of the most significant aspects of such 
statements.

A. Self-Regulatory Organization's Statement of the Purpose of, and 
Statutory Basis for, the Proposed Rule Change

1. Purpose
    The Exchange recently adopted a new mechanism to protect against 
erroneous Limit Orders, which are entered into the Nasdaq Market 
Center, at Rule 4757(c).\3\ This mechanism addresses risks to market 
participants of human error in entering Limit Orders at unintended 
prices. Specifically, LOP prevents certain Limit Orders from executing 
or being placed on the Order Book at prices outside pre-set standard 
limits.

[[Page 83893]]

The System rejects those Limit Orders, rather than executing them 
automatically. LOP rejects Limit Orders back to the member when the 
order exceeds certain defined logic. Specifically, LOP prevents certain 
Limit Orders at prices outside of pre-set standard limits (``LOP 
Limit'') from being accepted by the System.
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    \3\ See Securities Exchange Act Release No. 78246 [sic] (August 
24, 2016), 81 FR 59672 (August 30, 2016) (SR-NASDAQ-2016-067).
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Modifications of Orders
    In its adoptive filing, the Exchange noted that LOP shall apply to 
all Quotes and Orders, including any modified Orders.\4\ At this time, 
the Exchange proposes to remove ``including any modified Orders'' from 
the rule text at rule 4757(c)(i). The Exchange proposes to amend this 
language because it is misleading and may cause confusion. The Exchange 
proposes to state that LOP shall apply to all Quotes and Orders, 
including Quotes and Orders that have been modified, where the 
modification results in a new timestamp and priority.\5\ Any Order that 
is modified within the System, but does not lose priority, for example 
an Order that was decremented, will not be subject to LOP after it was 
modified because the system does not cancel decremented orders from the 
Order Book. If an Order is cancelled either by the member or by the 
system and a new Order entered into the System, the new Order would be 
subject to LOP. For example, if the price of an Order is modified, the 
system will cancel the Order and the modified Order would receive a new 
timestamp and priority and this Order would be subject to LOP.
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    \4\ If an Order is modified for price, LOP will review the order 
anew and, if LOP is triggered, such modification will not take 
effect and the original order will be rejected.
    \5\ See Rule 4756 (Entry and Display of Quotes and Orders) at 
(a)(3).
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Exceptions to LOP
    The Exchange also noted in its adoptive filing that LOP would not 
apply to Market Orders, Market Maker Peg Orders \6\ or Intermarket 
Sweep Orders (ISO).\7\ The Exchange proposes to modify this language to 
specifically state that LOP would not apply to Orders with Market and 
Primary Pegging.\8\
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    \6\ A ``Market Maker Peg Order'' is an Order Type designed to 
allow a Market Maker to maintain a continuous two-sided quotation at 
a displayed price that is compliant with the quotation requirements 
for Market Makers set forth in Rule 4613(a)(2). The displayed price 
of the Market Maker Peg Order is set with reference to a ``Reference 
Price'' in order to keep the displayed price of the Market Maker Peg 
Order within a bounded price range. A Market Maker Peg Order may be 
entered through RASH, FIX or QIX only. A Market Maker Peg Order must 
be entered with a limit price beyond which the Order may not be 
priced. The Reference Price for a Market Maker Peg Order to buy 
(sell) is the then-current National Best Bid (National Best Offer) 
(including Nasdaq), or if no such National Best Bid or National Best 
Offer, the most recent reported last-sale eligible trade from the 
responsible single plan processor for that day, or if none, the 
previous closing price of the security as adjusted to reflect any 
corporate actions (e.g., dividends or stock splits) in the security. 
See Nasdaq Rule 4702(b)(7).
    \7\ An Intermarket Sweep or ISO Order, which is an Order that is 
immediately executable within the Nasdaq Market Center against 
Orders against which they are marketable, is not subject to LOP. See 
NASDAQ Rule 4702.
    \8\ Orders with Market and Primary Pegging available through 
RASH, FIX, and QIX only.
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    There are three types of Pegging Orders: Primary Pegging, Market 
Pegging and Midpoint Pegging. Pegging is an Order Attribute that allows 
an Order to have its price automatically set with reference to the 
NBBO; provided, however, that if Nasdaq is the sole market center at 
the Best Bid or Best Offer (as applicable), then the price of any 
Displayed Order with Primary Pegging (as defined below) will be set 
with reference to the highest bid or lowest offer disseminated by a 
market center other than Nasdaq. An Order with a Pegging Order 
Attribute may be referred to as a ``Pegged Order.'' \9\ For purposes of 
this Rule 4703, the price to which an Order is pegged will be referred 
to as the Inside Quotation, the Inside Bid, or the Inside Offer, as 
appropriate. There are three varieties of Pegging:
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    \9\ Rule 4703(d).

     Primary Pegging means Pegging with reference to the 
Inside Quotation on the same side of the market. For example, if the 
Inside Bid was $11, an Order to buy with Primary Pegging would be 
priced at $11.
     Market Pegging means Pegging with reference to the 
Inside Quotation on the opposite side of the market. For example, if 
the Inside Offer was $11.06, an Order to buy with Market Pegging 
would be priced at $11.06.
     Midpoint Pegging means Pegging with reference to the 
midpoint between the Inside Bid and the Inside Offer (the 
``Midpoint''). Thus, if the Inside Bid was $11 and the Inside Offer 
was $11.06, an Order with Midpoint Pegging would be priced at 
$11.03. An Order with Midpoint Pegging is not displayed. An Order 
with Midpoint Pegging may be executed in sub-pennies if necessary to 
obtain a midpoint price.

    Midpoint Pegging will be the only Pegging Order subject to LOP, 
provided it has a limit price. Pegging is available only during Market 
Hours. An Order with Pegging may specify a limit price beyond which the 
Order may not be executed; provided, however, that if an Order has been 
assigned a Pegging Order Attribute and a Discretion Order \10\ 
Attribute, the Order may execute at any price within the discretionary 
price range, even if beyond the limit price specified with respect to 
the Pegging Order Attribute. A Midpoint Pegging Order may have a 
discretion attribute. A Midpoint Pegging Order with a discretion price 
would not be subject to LOP. The Exchange notes that a Midpoint Pegging 
Order, similar to a Primary or Market Pegging Order, as explained 
below, may result is [sic] an aggressive or passive price. As a result, 
the LOP may remove orders that were intended to be more aggressive or 
passive due to the discretionary attribute. For this reason, the 
Exchange will not subject a Midpoint Pegging Order with a discretion 
price to LOP.
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    \10\ Discretion is an Order Attribute under which an Order has a 
non-displayed discretionary price range within which the entering 
Participant is willing to trade; such an Order may be referred to as 
a ``Discretionary Order.'' See NASDAQ Rule 4703(g).
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    In addition, an Order with Primary Pegging or Market Pegging may 
specify an Offset Amount,\11\ such that the price of the Order will 
vary from the Inside Quotation by the selected Offset Amount. The 
Offset Amount may be either aggressive or passive. Thus, for example, 
if a Participant entered an Order to buy with Primary Pegging and a 
passive Offset Amount of $0.05 and the Inside Bid was $11, the Order 
would be priced at $10.95. If the Participant selected an aggressive 
Offset Amount of $0.02, however, the Order would be priced at $11.02. 
An Order with Primary Pegging and an Offset Amount will not be 
Displayed, unless the Order is Attributable. The Exchange notes that 
both Market and Primary Pegging may impact the market by effecting the 
bid or offer.
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    \11\ An offset is not supported for a Midpoint Pegging Order.
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    The Exchange is not applying LOP to orders with Market or Primary 
Pegging because it may result in removing orders that were intended to 
be more aggressive or to set the bid or offer on the market due to the 
order attributes noted above. These Pegging Orders are also subject to 
a collar, which is explained in this rule change.
    In contrast, an Order with Midpoint Pegging will only be at the 
midpoint and not have the same impact as the other two types of orders 
and therefore subjecting such an order to LOP does not impact the 
potential of the order since by definition it is set to the midpoint. 
An Order with Midpoint Pegging will not be displayed and is not subject 
to a collar.
    An Order with Market Pegging and no Offset behaves as a ``market 
order'' with respect to any liquidity on the Nasdaq Book at the Inside 
Quotation on the opposite side of the market because it is

[[Page 83894]]

immediately executable at that price. If, at the time of entry, there 
is no price to which a Pegged Order can be pegged, the Order will be 
rejected; provided, however, that a Displayed Order that has Market 
Pegging, or an Order with a Non-Display Attribute that has Primary 
Pegging or Market Pegging, will be accepted at its limit price.
    In the case of an Order with Midpoint Pegging, if the Inside Bid 
and Inside Offer are locked, the Order will be priced at the locking 
price, if the Inside Bid and Inside Offer are crossed, the Order will 
nevertheless be priced at the midpoint between the Inside Bid and 
Inside Offer, and if there is no Inside Bid and/or Inside Offer, the 
Order will be rejected.\12\ However, even if the Inside Bid and Inside 
Offer are locked or crossed, an Order with Midpoint Pegging that locked 
or crossed an Order on the Nasdaq Book would execute (provided, 
however, that a Midpoint Peg Post-Only Order would execute or post as 
described in Rule 4702(b)(5)(A)).\13\ It is important to note that only 
to the extent that a Midpoint Pegging Order has a limit price that the 
Order would be subject to LOP, unless the Midpoint Pegging Order also 
has a discretion attribute. If no limit price is specified, the 
Midpoint Pegging Order would not be subject to LOP.
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    \12\ This provision is subject to change by another rule change. 
See Securities Exchange Act Release No. 78908 (September 22, 2016), 
81 FR 66702 (September 28, 2016) (SR-NASDAQ-2016-111). The 
Commission notes that it approved SR-NASDAQ-2016-111 on November 10, 
2016. See Securities Exchange Act Release No. 79290.
    \13\ Id.
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    LOP will be operational each trading day, except for orders 
designated for opening, re-opening and closing crosses and initial 
public offerings. LOP would not be operational during trading halts and 
pauses. LOP will not apply in the event that there is no established 
LOP Reference Price.\14\ The LOP Reference Price shall be the current 
National Best Bid or Best Offer (NBBO), the bid for sell orders and the 
offer for buy orders.\15\ LOP will be applicable on all protocols.\16\ 
The LOP feature will be mandatory for all Nasdaq members.
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    \14\ For example, if there is a one-sided quote or if the NBB, 
when used as the LOP Reference Price, is equal to or less than 
$0.50.
    \15\ The Exchange will not accept incoming Limit Orders that 
exceed the LOP Reference Threshold. Limit Orders will not be 
accepted if the price of the Limit Order is greater than the LOP 
Reference Threshold for a buy Limit Order. Limit Orders will not be 
accepted if the price of the Limit Order is less than the LOP 
Reference Threshold for a sell Limit Order. The LOP Reference 
Threshold for buy orders will be the LOP Reference Price (offer) 
plus the applicable LOP Limit. The LOP Reference Threshold for sell 
orders will be the LOP Reference Price (bid) minus the applicable 
LOP Limit. The LOP Limit will be the greater of 10% of the LOP 
Reference Price or $0.50 for all securities across all trading 
sessions. The LOP Reference Price will be the current National Best 
Bid or Best Offer (NBBO), the bid for sell orders and the offer for 
buy orders.
    \16\ Nasdaq maintains several communications protocols for 
Participants to use in entering Orders and sending other messages to 
the Nasdaq Market Center, such as: OUCH, RASH, QIX, FLITE and FIX.
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Implementation of LOP
    The Exchange indicated in its adoptive rule change that it would 
implement this rule within ninety (90) days of the approval of the 
proposed rule change.\17\ At this time, the Exchange proposes to delay 
this implementation an additional sixty (60) days from the original 
timeframe in order to implement the LOP with the changes proposed 
herein. The Exchange will issue an Equities Trader Alert in advance to 
inform market participants of such implementation date.
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    \17\ See note 3 above.
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Pegging Order Collar
    In 2009, the Exchange adopted a collar for certain Unpriced 
Orders.\18\ At that time, the Exchange defined a Collared Order as all 
Unpriced Orders except: (1) Market On Open Orders as defined in Rule 
4752; (2) Market On Close Orders as defined in Rule 4754; (3) Unpriced 
Orders included by the System in any Nasdaq Halt Cross or Nasdaq 
Imbalance Cross, each as defined in Rule 4753; or (4) Unpriced Orders 
that are Reference Price Cross Orders as defined in Rule 4770. Any 
portion of a Collared Order that would execute (either on NASDAQ or 
when routed to another market center) at a price more than $0.25 or 5 
percent worse than the NBBO at the time when the order reaches the 
System, whichever is greater, will be cancelled. This rule related to 
the collar was inadvertently removed from the Exchange's rules.\19\ At 
this time, the Exchange proposes to amend the Nasdaq rules to add the 
collar into the rules once again.
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    \18\ See Securities Exchange Act Release No. 60371 (July 23, 
2009), 74 FR 38075 (July 30, 2009) (SR-NASDAQ-2009-070). An 
``Unpriced Order'' was defined in this rule change as any order type 
permitted by the System to buy or sell shares of a security at the 
national best bid (best offer) (``NBBO'') at the time when the order 
reaches the System.
    \19\ See Securities Exchange Act Release No. 75252 (June 22, 
2016), 80 FR 36865 (June 26, 2015) (SR-NASDAQ-2015-024).
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    The purpose of the collar is to protect market participants by 
reducing the risk that Primary and Market Pegging Orders will execute 
at prices that are significantly worse than the national best bid and 
offer (``NBBO'') at the time the Exchange receives the order. The 
Exchange believes that most market participants expect that their order 
will be executed at its full size at a price reasonably related to the 
prevailing market. However, market participants may not be aware that 
there is insufficient liquidity at or near the NBBO to fill the entire 
order, particularly for more thinly-traded securities.
    The Exchange proposes to memorialize this collar, which currently 
exists in its trading and routing systems functionality, and define it 
specifically as applicable to Primary and Market Pegging Orders. The 
Exchange seeks to memorialize the rule within Rule 4703, entitled 
``Order Attributes.'' The new rule text would state, ``Primary Pegging 
Orders and Market Pegging Orders are subject to a collar. Any portion 
of a Primary Pegging Order or Market Pegging Order that would execute, 
either on the Exchange or when routed to another market center, at a 
price of more than $0.25 or 5 percent worse than the NBBO at the time 
when the order reaches the System, whichever is greater, will be 
cancelled.''
    The following example illustrates how the collar works. A market 
participant submits a routable order to buy 500 shares. The NBBO is 
$6.00 bid by $6.05 offer, with 100 shares available on each side. Both 
sides of the NBBO are set by another market center (``Away Market''), 
but Nasdaq has 100 shares available at the $6.05 to sell at the offer 
price and also has reserve orders to sell 100 shares at $6.32 and 400 
shares at $6.40. No other market center is publishing offers to sell 
the security in between $6.05 and $6.40.
    In this example, the order would be executed in the following 
manner:
     100 shares would be executed by Nasdaq at the $6.05;
     400 shares would be routed to the Away Market as an 
immediate or cancel order with a price of $6.05;
     100 shares executed by the Away Market; \20\
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    \20\ This assumes that the Away Market's offer was still 
available and that the Away Market had no additional non-displayed 
orders at this price.
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     300 shares returned to Nasdaq;
     100 shares executed by Nasdaq at $6.32 (more than $0.25 
but less than 5 percent worse than the NBBO); and 200 shares, 
representing the remainder of the order, would be cancelled because the 
remaining liquidity available at $6.40 is more than 5 percent worse 
than the NBBO.
Implementation of Pegging Order Collar
    The Exchange intends to implement the Pegging Order Collar as soon 
as practicable pursuant to this proposal. The Exchange requests a 
waiver of the

[[Page 83895]]

operative delay to implement the Pegging Order Collar.
2. Statutory Basis
    The Exchange believes that its proposal is consistent with Section 
6(b) of the Act \21\ in general, and furthers the objectives of Section 
6(b)(5) of the Act \22\ in particular, in that it is designed to 
promote just and equitable principles of trade, to remove impediments 
to and perfect the mechanism of a free and open market and a national 
market system, and, in general to protect investors and the public 
interest, by mitigating risks to market participants of human error in 
entering Limit Orders at clearly unintended prices. The proposal will 
allow for protections for Limit Orders, which should encourage price 
continuity and, in turn, protect investors and the public interest by 
reducing executions occurring at dislocated prices.
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    \21\ 15 U.S.C. 78f(b).
    \22\ 15 U.S.C. 78f(b)(5).
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    The Exchange's proposal to amend the language concerning the 
modification of Orders is consistent with the Act because only new 
Orders would be subject to LOP. The proposed new language specifies 
that Orders that are modified for size and remain in the Order Book 
with the same priority, because only size was modified to reduce the 
size, will not be subject to LOP. Other modifications to Orders that 
amend the timestamp or priority will subject the modified orders to LOP 
because these Orders will be submitted into the System as new Orders. 
The LOP functionality protects market participants by reducing the risk 
that Midpoint Pegging Orders will execute at prices that are 
significantly worse than the national best bid and offer (``NBBO'') at 
the time the Exchange receives the order.
    The LOP feature assists with the maintenance of fair and orderly 
markets by mitigating the risks associated with errors resulting in 
executions at prices that are away from the Best Bid or Offer and 
potentially erroneous. Further, it protects investors from potentially 
receiving executions away from the prevailing prices at any given time. 
The Exchange adopted LOP to avoid a series of improperly priced 
aggressive orders transacting in the Order Book.
    The Exchange believes that excluding Primary Pegging and Market 
Pegging Orders is consistent with the Act because including such orders 
may result in removing orders that were intended to be more aggressive 
or to set the bid or offer on the market due to the order attributes 
noted in the Purpose section of this rule change. Market and Primary 
Pegging Orders are also currently subject to a collar. Market and 
Primary Pegging Orders that would execute, either on the Exchange or 
when routed to another market center, at a price of more than $0.25 or 
5 percent worse than the NBBO at the time when the order reaches the 
System, whichever is greater, will be cancelled.\23\ Further, the 
Market Pegging Order has its own process for rejecting those orders 
where no price exists to which a Pegged Order can be pegged.
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    \23\ The Exchange inadvertently removed the rule from the Nasdaq 
Rulebook. The Exchange proposes to adopt the rule herein.
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    This feature should create a level of protection that prevents the 
Limit Orders from entering the Order Book outside of an acceptable 
range for the Limit Order to execute. The LOP should reduce the 
negative impacts of sudden, unanticipated volatility, and serve to 
preserve an orderly market in a transparent and uniform manner, 
increase overall market confidence, and promote fair and orderly 
markets and the protection of investors.
Pegging Order Collar
    The Exchange believes that the collar proposal is consistent with 
the Act because it is designed to promote just and equitable principles 
of trade, to remove impediments to and perfect the mechanism of a free 
and open market and a national market system, and, in general to 
protect investors and the public interest, by avoiding execution of 
Primary and Market Pegging Orders (either on Nasdaq or on other market 
centers as a result of orders routed by Nasdaq) at prices that are 
significantly worse than the NBBO at the time the order is initially 
received. The NBBO provides reasonable guidance of the current value of 
a given security and therefore market participants should have 
confidence that their Market and Primary Pegging Orders will not be 
executed at a significantly worse price than the NBBO.

B. Self-Regulatory Organization's Statement on Burden on Competition

    The Exchange does not believe that the proposed rule change will 
impose any burden on competition not necessary or appropriate in 
furtherance of the purposes of the Act. The LOP feature should provide 
market participants with additional price protection from anomalous 
executions. This feature is not optional and is applicable to all 
members submitting Limit Orders. Thus, the Exchange does not believe 
the proposal creates any significant impact on competition. In 
addition, the proposed collar in Rule 4703 would be applicable to all 
Market and Primary Pegging Orders entered into the Nasdaq System. 
Similarly, all Midpoint Pegging Order will be subject to LOP, unless 
they have a discretion attribute.

C. Self-Regulatory Organization's Statement on Comments on the Proposed 
Rule Change Received From Members, Participants, or Others

    No written comments were either solicited or received.

III. Date of Effectiveness of the Proposed Rule Change and Timing for 
Commission Action

    Because the foregoing proposed rule change does not: (i) 
Significantly affect the protection of investors or the public 
interest; (ii) impose any significant burden on competition; and (iii) 
become operative for 30 days from the date on which it was filed, or 
such shorter time as the Commission may designate, it has become 
effective pursuant to Section 19(b)(3)(A) of the Act and Rule 19b-
4(f)(6) thereunder.\24\
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    \24\ 17 CFR 240.19b-4(f)(6). As required under Rule 19b-
4(f)(6)(iii), the Exchange provided the Commission with written 
notice of its intent to file the proposed rule change, along with a 
brief description and the text of the proposed rule change, at least 
five business days prior to the date of filing of the proposed rule 
change, or such shorter time as designated by the Commission.
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    A proposed rule change filed pursuant to Rule 19b-4(f)(6) under the 
Act \25\ normally does not become operative for 30 days after the date 
of its filing. However, Rule 19b-4(f)(6)(iii) \26\ permits the 
Commission to designate a shorter time if such action is consistent 
with the protection of investors and the public interest. The Exchange 
has asked the Commission to waive the 30-day operative delay so that 
the proposal may become operative immediately upon filing. When the 
Exchange first proposed the LOP, the Exchange represented that it would 
implement the LOP within 90 days of obtaining Commission approval 
(i.e., by November 22, 2016).\27\ The Exchange now proposes to extend 
the LOP implementation date by 60 days in order to include the 
modifications in this proposed rule change with the implementation of 
the LOP. Waiver of the 30-day operative delay would allow the Exchange 
to immediately extend the

[[Page 83896]]

LOP implementation date. The waiver would also permit the Exchange to 
immediately clarify the application of the LOP to modified orders. 
Moreover, the waiver would allow the Exchange to immediately exclude 
from the LOP Market Pegging Orders, Primary Pegging Orders, and 
Midpoint Pegging Orders that have a discretion price. As noted above, 
the Exchange proposes to exclude these Orders because these Orders may 
be intended to be aggressive or to set the bid or offer on the market. 
Moreover, as noted above, Market and Primary Pegging Orders are 
currently subject to collars. Lastly, the waiver would allow the 
Exchange's rules to immediately and accurately reflect the current 
collars for Market and Primary Pegging Orders, which were removed 
inadvertently. Accordingly, the Commission finds that waiving the 30-
day operative delay is consistent with the protection of investors and 
the public interest and designates the proposal operative upon 
filing.\28\
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    \25\ 17 CFR 240.19b-4(f)(6).
    \26\ 17 CFR 240.19b-4(f)(6)(iii).
    \27\ See Securities Exchange Act Release Nos. 78246 (July 7, 
2016), 81 FR 45332 (July 13, 2016) (noticing SR-NASDAQ-2016-067) and 
78667 (August 24, 2016), 81 FR 59672 (August 30, 2016) (approving 
SR-NASDAQ-2016-067).
    \28\ For purposes only of waiving the 30-day operative delay, 
the Commission has considered the proposed rule's impact on 
efficiency, competition, and capital formation. 15 U.S.C. 78c(f).
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    At any time within 60 days of the filing of such proposed rule 
change, the Commission summarily may temporarily suspend such rule 
change if it appears to the Commission that such action is necessary or 
appropriate in the public interest, for the protection of investors, or 
otherwise in furtherance of the purposes of the Act. If the Commission 
takes such action, the Commission shall institute proceedings to 
determine whether the proposed rule change should be approved or 
disapproved.

IV. Solicitation of Comments

    Interested persons are invited to submit written data, views, and 
arguments concerning the foregoing, including whether the proposed rule 
change is consistent with the Act. Comments may be submitted by any of 
the following methods:

Electronic Comments

     Use the Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml); or
     Send an email to [email protected]. Please include 
File Number SR-NASDAQ-2016-155 on the subject line.

Paper Comments

     Send paper comments in triplicate to Brent J. Fields, 
Secretary, Securities and Exchange Commission, 100 F Street NE., 
Washington, DC 20549-1090.

All submissions should refer to File Number SR-NASDAQ-2016-155. This 
file number should be included on the subject line if email is used. To 
help the Commission process and review your comments more efficiently, 
please use only one method. The Commission will post all comments on 
the Commission's Internet Web site (http://www.sec.gov/rules/sro.shtml).
    Copies of the submission, all subsequent amendments, all written 
statements with respect to the proposed rule change that are filed with 
the Commission, and all written communications relating to the proposed 
rule change between the Commission and any person, other than those 
that may be withheld from the public in accordance with the provisions 
of 5 U.S.C. 552, will be available for Web site viewing and printing in 
the Commission's Public Reference Room, 100 F Street NE., Washington, 
DC 20549, on official business days between the hours of 10:00 a.m. and 
3:00 p.m. Copies of the filing also will be available for inspection 
and copying at the principal office of the Exchange. All comments 
received will be posted without change; the Commission does not edit 
personal identifying information from submissions. You should submit 
only information that you wish to make available publicly. All 
submissions should refer to File Number SR-NASDAQ-2016-155 and should 
be submitted on or before December 13, 2016.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\29\
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    \29\ 17 CFR 200.30-3(a)(12).
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Brent J. Fields,
Secretary.
[FR Doc. 2016-28037 Filed 11-21-16; 8:45 am]
 BILLING CODE 8011-01-P